CVC will restructure up to BRL 900 million in debt – 03/10/2023 – Market

Tour operator CVC announced this Friday (10) that it reached an agreement with most of the debenture holders of the fourth issue and with all holders of the company’s fifth issue debt securities, in an agreement that involves up to R$ 900 million in debts. .

The company informed in a material fact to the market that 75% of the debenture holders of the fourth issue accepted the agreement, which will allow the reduction of the company’s gross debt.

According to CVC, the reprofiling involves postponing the maturity of the bonds to 3 years and 6 months and amortization of 10% to 20% of the outstanding balance, in addition to interest payments.

The company will also have to make a capital increase by the end of November this year of at least R$ 125 million. If that doesn’t happen, CVC will have to make a capital increase of up to R$200 million by the end of the year with the “objective of capitalizing the credits represented by the existing reprofiled debentures.”

The price of the capital increase should be between R$3.50 per share and a 20% discount on the average closing price of the shares in the 30 consecutive days prior to the date of approval of the operation.

In addition, the agreement provides that the reprofiled debentures will have financial covenants (obligations applied to borrowers) that limit the company’s dividend at 25% per year and the company’s investment at R$ 125 million per year. The leverage covenant is up to 3.5 times until 2024, up to 3 times from March 2025 and 2.5 times from March 2026.